Central and Eastern European-focussed property developer HB Reavis has raised Kč 1.25 billion (€46.2 million, $51.7 million) through a bond issue, listed on the Prague Stock Exchange.
The unsecured bond issue was carried out as a public offer until 14 April, followed by a private offer to selected institutional investors. More than 71 percent of the bond issue was subscribed by institutional investors with the balance taken up by private banking clients.
The bonds have a floating annual coupon with a spread of 4 percent above six-month Pribor and mature in March 2021. After swapping the transaction into Euro, the coupon translates to a 4.86 percent total fixed interest rate. The bonds are backed with an HB Reavis Group guarantee and the proceeds will finance the firm’s acquisition and development process.
The latest bond issue brings the total funds raised by HB Reavis through the Central European capital markets since November 2013 to almost €150 million, the firm said.
“Our debut on the Czech capital market was overwhelmingly successful, which again confirmed investors’ confidence in HB Reavis’ business strategy and financial standing. This issue reinforces HB Reavis’ position as an issuer of unsecured bonds in multiple markets“, said Marian Herman, CFO at HB Reavis.
The bond issue was managed by UniCredit Bank Czech Republic and Slovakia and Komerční banka (Societe Generale Group).